• Second Quarter Net Income of $170.7 Million or $0.16 Per Diluted Share, Compared to the Prior Year Second Quarter Net Income of $14.8 Million or $0.01 Per Diluted Share
  • Second Quarter Adjusted Net Loss Per Diluted Share of $0.01, Compared to the Prior Year Second Quarter Adjusted Net Income Per Diluted Share of $0.03
  • Adjusted EBITDA of $213.3 Million for the Second Quarter, Compared to the Prior Year Second Quarter Adjusted EBITDA of $312.7 Million

Rite Aid Corporation (NYSE: RAD) today reported operating results for its second fiscal quarter ended September 2, 2017.

For the second quarter, the company reported revenues of $7.7 billion, net income of $170.7 million, or $0.16 per diluted share, Adjusted net loss of $15.6 million, or $0.01 per diluted share and Adjusted EBITDA of $213.3 million, or 2.8 percent of revenues.

“While our performance for the quarter reflects a challenging reimbursement rate environment and the effects of an extended merger and asset sale process, securing regulatory clearance for the amended asset sale agreement with Walgreens Boots Alliance gives us a clear path forward to realize the benefits of the transaction and implement our plans to deliver improved results. In addition, we’ve announced this morning that Kermit Crawford – a proven leader with extensive retail pharmacy experience – is joining Rite Aid as president and chief operating officer to further strengthen our leadership team,” said Rite Aid Chairman and CEO John Standley.

“As we work to complete the asset sale, which will reduce our leverage and provide greater financial flexibility to invest in our business, we’ll also focus on generating momentum for our business by meeting the health and wellness needs of our customers and patients while delivering an outstanding experience in our stores.”

Second Quarter Summary

Revenues for the quarter were $7.7 billion compared to revenues of $8.0 billion in the prior year’s second quarter, a decrease of $350.9 million or 4.4 percent. Retail Pharmacy Segment revenues were $6.3 billion and decreased 3.4 percent compared to the prior year period primarily as a result of a decrease in same store sales and reimbursement rates. Revenues in the company’s Pharmacy Services Segment were $1.5 billion and decreased 8.7 percent compared to the prior year period, due to an election to participate in fewer Medicare Part D regions.

Same store sales for the quarter decreased 3.4 percent over the prior year, consisting of a 4.6 percent decrease in pharmacy sales and a 0.9 percent decrease in front-end sales. Pharmacy sales included an approximate 189 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, decreased 1.8 percent over the prior year period due in part, to exclusion from certain pharmacy networks that Rite Aid participated in the prior year. Prescription sales accounted for 67.8 percent of total drugstore sales, and third party prescription revenue was 98.3 percent of pharmacy sales.

Net income was $170.7 million or $0.16 per diluted share compared to last year’s second quarter net income of $14.8 million or $0.01 per diluted share. The improvement in operating results was due primarily to receipt of the $325.0 million merger termination fee from Walgreens Boots Alliance, Inc. (Nasdaq: WBA) for the termination of the merger agreement, effective June 28, 2017, partially offset by a decline in Adjusted EBITDA and higher income tax expense.

Adjusted net loss was $15.6 million or $0.01 per diluted share compared to last year’s second quarter adjusted net income of $36.4 million or $0.03 per diluted share. The decline in Adjusted net income was due to a decline in Adjusted EBITDA, partially offset by a reduction in adjusted income tax expense and depreciation and amortization expense.

Adjusted EBITDA (which is reconciled to net income in the attached tables) was $213.3 million or 2.8 percent of revenues for the second quarter compared to $312.7 million or 3.9 percent of revenues for the same period last year. The decline in Adjusted EBITDA was due to a decrease of $98.6 million in the Retail Pharmacy Segment. The decrease in the Retail Pharmacy Segment EBITDA was primarily driven by a decline in pharmacy gross profit, which was due to a decline in reimbursement rates, which the company was unable to fully offset with generic purchasing efficiencies and lower script counts. The decline in pharmacy gross profit was partially offset by good cost control. Adjusted EBITDA in the Pharmacy Services Segment was flat compared to the prior year.

In the second quarter, the company opened 1 store, relocated 1 store, remodeled 54 stores and expanded 1 store, bringing the total number of wellness stores chainwide to 2,532. The company closed 17 stores, resulting in a total store count of 4,507 at the end of the second quarter.

Rite Aid is one of the nation’s leading drugstore chains with 4,507 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid’s website at www.riteaid.com.

Conference Call Broadcast

Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid's management team. The call will be simulcast via the internet and can be accessed at www.riteaid.com in the conference call section of investor information. Slides related to materials discussed on the call will also be available. A playback of the call will be available on both sites starting at 12 p.m. Eastern Time today. A playback of the call will also be available by telephone beginning at 12 p.m. Eastern Time today until 11:59 p.m. Eastern Time on Sept. 30, 2017. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the eight-digit reservation number 72531385.

Cautionary Statement Regarding Forward Looking Statements

Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the expected timing of the closing of the sale of stores and assets to WBA; the ability of the parties to complete the sale and related transactions considering the various closing conditions; the outcome of legal and regulatory matters in connection with the sale of store and assets of Rite Aid to WBA; the expected benefits of the transactions such as improved operations, growth potential, market profile and financial strength; the competitive ability and position of Rite Aid following completion of the proposed transactions; the ability of Rite Aid to implement new business strategies following the completion of the proposed transactions and any assumptions underlying any of the foregoing. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements; general economic, industry, market, competitive, regulatory and political conditions; our ability to improve the operating performance of our stores in accordance with our long term strategy; the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; outcomes of legal and regulatory matters; changes in legislation or regulations, including healthcare reform; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; risks related to the proposed transactions, including the possibility that the transactions may not close, including because a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transactions, or may require conditions, limitations or restrictions in connection with such approvals, the risk that there may be a material adverse change of Rite Aid, or the business of Rite Aid may suffer as a result of uncertainty surrounding the proposed transactions; risks related to the ability to realize the anticipated benefits of the proposed transactions; risks associated with the financing of the proposed transaction; disruption from the proposed transaction making it more difficult to maintain business and operational relationships; the effect of the pending sale on Rite Aid's business relationships (including, without limitation, customers and suppliers operating results and business generally; risks related to diverting management's or employees' attention from ongoing business operations; the risk that Rite Aid's stock price may decline significantly if the proposed transaction is not completed; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the proposed transactions; potential changes to our strategy in the event the proposed transactions do not close, which may include delaying or reducing capital or other expenditures, selling assets or other operations, attempting to restructure or refinance our debt, or seeking additional capital, and other business effects. These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K, and in other documents that we file or furnish with the Securities and Exchange Commission, which you are encouraged to read. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Reconciliation of Non-GAAP Financial Measures

The company separately reports financial results on the basis of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, and Adjusted EBITDA, which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization of EnvisionRx intangible assets, merger and acquisition-related costs, loss on debt retirements, LIFO adjustments, and the Walgreens Boots Alliance, Inc. termination fee. Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, inventory write-downs related to store closings, debt retirements, the Walgreens Boots Alliance, Inc. termination fee, and other items (including stock-based compensation expense, merger and acquisition-related costs, severance and costs related to distribution center closures, gain or loss on sale of assets and revenue deferrals related to our customer loyalty program).

    RITE AID CORPORATION AND SUBSIDIARIES   CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited)       September 2, 2017 March 4, 2017 ASSETS Current assets: Cash and cash equivalents $ 238,978 $ 245,410 Accounts receivable, net 1,843,320 1,771,126 Inventories, net of LIFO reserve of $1,022,282 and $999,776 2,877,427 2,837,211 Prepaid expenses and other current assets   221,644     211,541   Total current assets 5,181,369 5,065,288 Property, plant and equipment, net 2,188,217 2,251,692 Goodwill 1,715,479 1,715,479 Other intangibles, net 747,288 835,795 Deferred tax assets 1,453,291 1,505,564 Other assets   212,664     219,934   Total assets $ 11,498,308   $ 11,593,752     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt and lease financing obligations $ 22,491 $ 21,335 Accounts payable 1,687,880 1,613,909 Accrued salaries, wages and other current liabilities   1,270,840     1,370,004   Total current liabilities 2,981,211 3,005,248 Long-term debt, less current maturities 7,082,549 7,263,288 Lease financing obligations, less current maturities 37,890 44,070 Other noncurrent liabilities   663,048     667,076   Total liabilities 10,764,698 10,979,682   Commitments and contingencies - - Stockholders' equity: Common stock 1,062,411 1,053,690 Additional paid-in capital 4,841,700 4,839,854 Accumulated deficit (5,129,213 ) (5,237,157 ) Accumulated other comprehensive loss   (41,288 )   (42,317 ) Total stockholders' equity   733,610     614,070   Total liabilities and stockholders' equity $ 11,498,308   $ 11,593,752       RITE AID CORPORATION AND SUBSIDIARIES     CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (unaudited)      

Thirteen weeks endedSeptember 2, 2017

Thirteen weeks endedAugust 27, 2016

Revenues $ 7,678,903 $ 8,029,806 Costs and expenses: Cost of revenues 5,891,900 6,113,063 Selling, general and administrative expenses 1,734,306 1,778,247 Lease termination and impairment charges 3,128 7,233 Interest expense 111,261 105,388 Walgreens Boots Alliance merger termination fee (325,000 ) - (Gain) loss on sale of assets, net   (14,495 )   174       7,401,100     8,004,105     Income before income taxes 277,803 25,701 Income tax expense   107,087     10,928   Net income $ 170,716   $ 14,773     Basic and diluted earnings per share:   Numerator for earnings per share: Income attributable to common stockholders - basic and diluted $ 170,716   $ 14,773         Denominator: Basic weighted average shares 1,048,548 1,044,198 Outstanding options and restricted shares, net   18,668     17,251     Diluted weighted average shares   1,067,216     1,061,449     Basic and diluted income per share $ 0.16 $ 0.01     RITE AID CORPORATION AND SUBSIDIARIES     CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (unaudited)      

Twenty-six weeks endedSeptember 2, 2017

Twenty-six weeks endedAugust 27, 2016

Revenues $ 15,460,356 $ 16,213,987 Costs and expenses: Cost of revenues 11,914,319 12,402,944 Selling, general and administrative expenses 3,495,596 3,571,494 Lease termination and impairment charges 7,214 13,014 Interest expense 221,198 210,501 Walgreens Boots Alliance merger termination fee (325,000 ) - (Gain) loss on sale of assets, net   (20,216 )   1,230       15,293,111     16,199,183     Income before income taxes 167,245 14,804 Income tax expense   71,878     4,619   Net income $ 95,367   $ 10,185     Basic and diluted earnings per share:   Numerator for earnings per share: Income attributable to common stockholders - basic and diluted $ 95,367   $ 10,185         Denominator: Basic weighted average shares 1,047,687 1,043,317 Outstanding options and restricted shares, net   22,597     17,210     Diluted weighted average shares   1,070,284     1,060,527     Basic and diluted income per share $ 0.09 $ 0.01     RITE AID CORPORATION AND SUBSIDIARIES     CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (unaudited)       Thirteen weeks ended Thirteen weeks ended September 2, 2017 August 27, 2016 Net income $ 170,716 $ 14,773 Other comprehensive income: Defined benefit pension plans: Amortization of prior service cost, net transition obligation and net actuarial losses included in net periodic pension cost, net of $342 and $451 tax expense   515   681 Total other comprehensive income   515   681 Comprehensive income $ 171,231 $ 15,454     RITE AID CORPORATION AND SUBSIDIARIES     CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (unaudited)       Twenty-six weeks ended Twenty-six weeks ended September 2, 2017 August 27, 2016 Net income $ 95,367 $ 10,185 Other comprehensive income: Defined benefit pension plans: Amortization of prior service cost, net transition obligation and net actuarial losses included in net periodic pension cost, net of $684 and $902 tax expense   1,029   1,362 Total other comprehensive income   1,029   1,362 Comprehensive income $ 96,396 $ 11,547     RITE AID CORPORATION AND SUBSIDIARIES     SUPPLEMENTAL SEGMENT OPERATING INFORMATION (Dollars in thousands) (unaudited)    

Thirteen weeks endedSeptember 2, 2017

Thirteen weeks endedAugust 27, 2016

  Retail Pharmacy Segment Revenues (a) $ 6,267,929 $ 6,485,482 Cost of revenues (a)   4,584,188     4,666,133   Gross profit 1,683,741 1,819,349 LIFO charge   5,632     13,760   FIFO gross profit 1,689,373 1,833,109   Gross profit as a percentage of revenues 26.86 % 28.05 % LIFO charge as a percentage of revenues 0.09 % 0.21 % FIFO gross profit as a percentage of revenues 26.95 % 28.26 %   Selling, general and administrative expenses 1,658,873 1,708,633 Selling, general and administrative expenses as a percentage of revenues 26.47 % 26.35 %   Cash interest expense 105,207 100,105 Non-cash interest expense   5,434     5,273   Total interest expense 110,641 105,378   Adjusted EBITDA 163,995 262,643 Adjusted EBITDA as a percentage of revenues 2.62 % 4.05 %     Pharmacy Services Segment Revenues (a) $ 1,492,831 $ 1,634,876 Cost of revenues (a)   1,389,569     1,537,482   Gross profit 103,262 97,394   Gross profit as a percentage of revenues 6.92 % 5.96 %   Adjusted EBITDA 49,275 50,010 Adjusted EBITDA as a percentage of revenues 3.30 % 3.06 %   (a) - Revenues and cost of revenues include $81,857 and $90,552 of inter-segment activity for the thirteen weeks ended September 2, 2017 and August 27, 2016, respectively, that is eliminated in consolidation.     RITE AID CORPORATION AND SUBSIDIARIES     SUPPLEMENTAL SEGMENT OPERATING INFORMATION (Dollars in thousands) (unaudited)    

Twenty-six weeks endedSeptember 2, 2017

Twenty-six weeks endedAugust 27, 2016

  Retail Pharmacy Segment Revenues (a) $ 12,618,137 $ 13,161,030 Cost of revenues (a)   9,280,334     9,536,314   Gross profit 3,337,803 3,624,716 LIFO charge   22,506     27,511   FIFO gross profit 3,360,309 3,652,227   Gross profit as a percentage of revenues 26.45 % 27.54 % LIFO charge as a percentage of revenues 0.18 % 0.21 % FIFO gross profit as a percentage of revenues 26.63 % 27.75 %   Selling, general and administrative expenses 3,341,264 3,432,536 Selling, general and administrative expenses as a percentage of revenues 26.48 % 26.08 %   Cash interest expense 209,630 199,787 Non-cash interest expense   10,910     10,702   Total interest expense 220,540 210,489   Adjusted EBITDA 307,960 507,470 Adjusted EBITDA as a percentage of revenues 2.44 % 3.86 %     Pharmacy Services Segment Revenues (a) $ 3,006,072 $ 3,237,235 Cost of revenues (a)   2,797,838     3,050,908   Gross profit 208,234 186,327   Gross profit as a percentage of revenues 6.93 % 5.76 %   Adjusted EBITDA 97,874 91,185 Adjusted EBITDA as a percentage of revenues 3.26 % 2.82 %  

(a) -

Revenues and cost of revenues include $163,853 and $184,278 of inter-segment activity for the twenty-six weeks ended September 2, 2017 and August 27, 2016, respectively, that is eliminated in consolidation.

    RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (In thousands) (unaudited)        

Thirteen weeks endedSeptember 2, 2017

Thirteen weeks endedAugust 27, 2016

    Reconciliation of net income to adjusted EBITDA: Net income $ 170,716 $ 14,773 Adjustments: Interest expense 111,261 105,388 Income tax expense 107,087 10,928 Depreciation and amortization 132,012 142,051 LIFO charge 5,632 13,760 Lease termination and impairment charges 3,128 7,233 Walgreens Boots Alliance merger termination fee (325,000 ) - Other   8,434     18,520   Adjusted EBITDA $ 213,270   $ 312,653   Percent of revenues 2.78 % 3.89 %     RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (In thousands) (unaudited)        

Twenty-six weeks endedSeptember 2, 2017

Twenty-six weeks endedAugust 27, 2016

    Reconciliation of net income to adjusted EBITDA: Net income $ 95,367 $ 10,185 Adjustments: Interest expense 221,198 210,501 Income tax expense 71,878 4,619 Depreciation and amortization 274,104 280,839 LIFO charge 22,506 27,511 Lease termination and impairment charges 7,214 13,014 Walgreens Boots Alliance merger termination fee (325,000 ) - Other   38,567     51,986   Adjusted EBITDA $ 405,834   $ 598,655   Percent of revenues 2.62 % 3.69 %     RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ADJUSTED NET (LOSS) INCOME (Dollars in thousands, except per share amounts) (unaudited)      

Thirteen weeks endedSeptember 2, 2017

Thirteen weeks endedAugust 27, 2016

  Net income $ 170,716 $ 14,773 Add back - Income tax expense   107,087     10,928   Income before income taxes 277,803 25,701   Adjustments: Amortization of EnvisionRx intangible assets 19,560 20,853 LIFO charge 5,632 13,760 Merger and Acquisition-related costs 13,883 1,402 Walgreens Boots Alliance merger termination fee   (325,000 )   -     Adjusted (loss) income before income taxes (8,122 ) 61,716   Adjusted income tax expense (a)   7,480     25,335   Adjusted net (loss) income $ (15,602 ) $ 36,381     Adjusted net (loss) income per diluted share:   Numerator for adjusted net (loss) income per diluted share: Adjusted net (loss) income $ (15,602 ) $ 36,381         Denominator: Basic weighted average shares 1,048,548 1,044,198 Outstanding options and restricted shares, net   -     17,251     Diluted weighted average shares   1,048,548     1,061,449     Net income per diluted share $ 0.16 $ 0.01   Adjusted net (loss) income per diluted share $ (0.01 ) $ 0.03  

(a)

The fiscal year 2018 and 2017 annual effective tax rates, adjusted to exclude amortization of EnvisionRx intangible assets, LIFO charges, Merger and Acquisition-related costs and the Walgreens Boots Alliance merger termination fee from book income, are used for the thirteen weeks ended September 2, 2017 and August 27, 2016, respectively.

    RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ADJUSTED NET (LOSS) INCOME (Dollars in thousands, except per share amounts) (unaudited)      

Twenty-six weeks endedSeptember 2, 2017

Twenty-six weeks endedAugust 27, 2016

  Net income $ 95,367 $ 10,185 Add back - Income tax expense   71,878     4,619   Income before income taxes 167,245 14,804   Adjustments: Amortization of EnvisionRx intangible assets 40,276 41,168 LIFO charge 22,506 27,511 Merger and Acquisition-related costs 21,121 4,158 Walgreens Boots Alliance merger termination fee   (325,000 )   -     Adjusted (loss) income before income taxes (73,852 ) 87,641   Adjusted income tax (benefit) expense (a)   (11,346 )   34,468   Adjusted net (loss) income $ (62,506 ) $ 53,173     Adjusted net (loss) income per diluted share:   Numerator for adjusted net (loss) income per diluted share: Adjusted net (loss) income $ (62,506 ) $ 53,173         Denominator: Basic weighted average shares 1,047,687 1,043,317 Outstanding options and restricted shares, net   -     17,210     Diluted weighted average shares   1,047,687     1,060,527     Net income per diluted share $ 0.09 $ 0.01   Adjusted net (loss) income per diluted share $ (0.06 ) $ 0.05  

(a)

The fiscal year 2018 and 2017 annual effective tax rates, adjusted to exclude amortization of EnvisionRx intangible assets, LIFO charges, Merger and Acquisition-related costs and the Walgreens Boots Alliance merger termination fee from book income, are used for the twenty-six weeks ended September 2, 2017 and August 27, 2016, respectively.

    RITE AID CORPORATION AND SUBSIDIARIES   CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited)      

Thirteen weeks endedSeptember 2, 2017

Thirteen weeks endedAugust 27, 2016 (a)

    OPERATING ACTIVITIES: Net income $ 170,716 $ 14,773 Adjustments to reconcile to net cash provided by (used in) operating activities: Depreciation and amortization 132,012 142,051 Lease termination and impairment charges 3,128 7,233 LIFO charge 5,632 13,760 (Gain) loss on sale of assets, net (14,495 ) 174 Stock-based compensation expense 6,324 12,552 Changes in deferred taxes 103,010 7,747 Excess tax benefit on stock options and restricted stock - (2,365 ) Changes in operating assets and liabilities: Accounts receivable (60,025 ) (152,725 ) Inventories (93,886 ) (216,911 ) Accounts payable 58,180 34,693 Other assets and liabilities, net   (105,499 )   (1,943 ) Net cash provided by (used in) operating activities 205,097 (140,961 ) INVESTING ACTIVITIES: Payments for property, plant and equipment (59,723 ) (119,641 ) Intangible assets acquired (4,839 ) (12,488 ) Proceeds from dispositions of assets and investments 8,768 3,745 Proceeds from insured loss   1,490     -   Net cash used in investing activities (54,304 ) (128,384 ) FINANCING ACTIVITIES: Net (payments to) proceeds from revolver (100,000 ) 270,000 Principal payments on long-term debt (3,829 ) (5,509 ) Change in zero balance cash accounts (18,579 ) (1,728 ) Net proceeds from the issuance of common stock 68 1,587 Excess tax benefit on stock options and restricted stock - 2,365 Payments for taxes related to net share settlement of equity awards   (3,924 )   (6,117 ) Net cash (used in) provided by financing activities   (126,264 )   260,598   Increase (decrease) in cash and cash equivalents 24,529 (8,747 ) Cash and cash equivalents, beginning of period   214,449     144,840   Cash and cash equivalents, end of period $ 238,978   $ 136,093       SUPPLEMENTAL CASH FLOW INFORMATION   Payments for property, plant and equipment $ 59,723 $ 119,641 Intangible assets acquired   4,839     12,488   Total cash capital expenditures 64,562 132,129 Equipment received for noncash consideration - 114 Equipment financed under capital leases   4,758     1,307   Gross capital expenditures $ 69,320   $ 133,550    

(a) During the thirteen weeks ended June 3, 2017, the Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which resulted in a retrospective reclassification of $6.1 million for payments for taxes related to net share settlement of equity awards from operating activities to financing activities which decreased net cash used in operating activities and decreased cash provided by financing activities for the thirteen weeks ended August 27, 2016.

    RITE AID CORPORATION AND SUBSIDIARIES   CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited)      

Twenty-six weeks endedSeptember 2, 2017

Twenty-six weeks endedAugust 27, 2016 (a)

    OPERATING ACTIVITIES: Net income $ 95,367 $ 10,185 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 274,104 280,839 Lease termination and impairment charges 7,214 13,014 LIFO charge 22,506 27,511 (Gain) loss on sale of assets, net (20,216 ) 1,230 Stock-based compensation expense 15,362 23,696 Changes in deferred taxes 64,850 1,998 Excess tax benefit on stock options and restricted stock - (3,248 ) Changes in operating assets and liabilities: Accounts receivable (73,782 ) (227,255 ) Inventories (62,714 ) (157,471 ) Accounts payable 62,552 150,339 Other assets and liabilities, net   (87,412 )   (101,799 ) Net cash provided by operating activities 297,831 19,039 INVESTING ACTIVITIES: Payments for property, plant and equipment (120,461 ) (225,718 ) Intangible assets acquired (13,073 ) (28,869 ) Proceeds from dispositions of assets and investments 17,407 6,833 Proceeds from insured loss   3,627     -   Net cash used in investing activities (112,500 ) (247,754 ) FINANCING ACTIVITIES: Net (payments to) proceeds from revolver (190,000 ) 250,000 Principal payments on long-term debt (8,096 ) (11,230 ) Change in zero balance cash accounts 10,189 534 Net proceeds from the issuance of common stock 215 3,958 Excess tax benefit on stock options and restricted stock - 3,248 Payments for taxes related to net share settlement of equity awards   (4,071 )   (6,173 ) Net cash (used in) provided by financing activities   (191,763 )   240,337   (Decrease) increase in cash and cash equivalents (6,432 ) 11,622 Cash and cash equivalents, beginning of period   245,410     124,471   Cash and cash equivalents, end of period $ 238,978   $ 136,093       SUPPLEMENTAL CASH FLOW INFORMATION   Payments for property, plant and equipment $ 120,461 $ 225,718 Intangible assets acquired   13,073     28,869   Total cash capital expenditures 133,534 254,587 Equipment received for noncash consideration 1,295 746 Equipment financed under capital leases   8,615     2,860   Gross capital expenditures $ 143,444   $ 258,193  

(a) During the thirteen weeks ended June 3, 2017, the Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which resulted in a retrospective reclassification of $6.2 million for payments for taxes related to net share settlement of equity awards from operating activities to financing activities which increased net cash provided by operating activities and decreased cash provided by financing activities for the twenty-six weeks ended August 27, 2016.

Rite Aid CorporationINVESTORS:Matt Schroeder, 717-214-8867investor@riteaid.comorMEDIA:Susan Henderson, 717-730-7766

Rite Aid (NYSE:RAD)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Rite Aid Charts.
Rite Aid (NYSE:RAD)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Rite Aid Charts.